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November 10, 2009 9:30 EST
you're watching:
OptionsNews
An ahead-of-the-bell look at the market's biggest stories and a review of unusual options activity. Filled with smart market analysis from the ONN.tv team, "Options News" turns the market's top headlines into trading intelligence, hosted by Karla Yeh.
Apple shares are up more than 3.5%, and options volume in the November expiration month boomed Monday.
On today’s Options News, Karla Yeh and the www.ONN.tv team look at Tuesday’s pre-market price action in the broader market. Economic data is minimal today, but ONN.tv is your place for jobless claims and consumer sentiment data due out at the end of the week. In pre-market trading, stock futures are edging down after yesterday’s big run-up.
At the close Monday, the Dow rallied 203 points to 10,227 and the S&P 500 gained 24 points to 1,093. The rally brought the CBOE SPX Volatility Index (VIX) way down to 22.8 intraday, but implied volatility creep back up to close around 23.3., or down 4% on the day Monday.
Apple’s Rally is the Apple of Some Option Traders’ Eyes
www.ONN.tv Senior Derivatives Specialist Jared Levy reviews option activity in Apple Inc. (AAPL). AAPL participated in Monday’s rally, as the Dow Jones Industrial Average reached its highest level since October 2008. Investors seemed to change their risk profiles as the stock climbed. In Options Land, we saw the November 210/220 call spread trade more than 3,300 times yesterday for around 50 cents per spread. About 31,000 November 210 calls traded, and 18,500 November 220 calls traded in the computer giant. AAPL closed up 3.5% to higher than $201.
ONN.tv continues its webinar series tomorrow at 4:30 p.m. Eastern Time. Tune in for an in-depth look at the Butterfly Spread strategy and learn how to best use these limited-risk strategies that look for limited movement in the underlying. Sign up by clicking on the webinars tab at www.ONN.tv to reserve your seat. Sign up now – spots fill up quickly!
For more breaking news and investment pointers on the options market, stay tuned in to ONN.tv.
